The Indonesian tax authorities will impose income tax on capital gains from cryptocurrency investments and a value-added tax (VAT) on cryptocurrency purchases — at 0.1% each — starting from May 1, as the industry sees a boom in the country, according to Reuters.
In a local media briefing, Hestu Yoga Saksama, director of tax regulations for the Ministry of Finance, said, “crypto assets will be subject to VAT because they are a commodity as defined by the trade ministry. They are not a currency.”
“So we will impose income tax and VAT,” he added.
The 0.1% capital gains tax matches the rate that Indonesian investors pay for stocks.
The largest Southeast Asian economy saw a grappling interest in cryptocurrency assets such as (CRYPTO: BTC) (CRYPTO: ETH), and (CRYPTO: DOGE) during the COVID-19 pandemic. By the end of 2021, the number of cryptocurrency holders was as high as 11 million in Indonesia, as per Reuters.
This came after another Asian country — India — began taxing profits from cryptocurrency assets at 30% without allowing loss offsets or deductions, earlier this month, in addition to a 1% tax deducted at source on all cryptocurrency transactions.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.